If you have missed A MORTGAGE PAYMENT and 30 days has gone by ~ your home loan is in default with Servicers (the bank you write your mortgage payments to). It is important to know that these banks (Bank of America, Wells Fargo, CITI, JPMorgan/Chase, etc) are merely SERVICERS for Fannie Mae/Freddie Mac or a privately held company and make a fraction of 1% of your loan value for handling the mortgage payment.

          YOU NEED TO CALL THE SERVICER (the bank you have been writing your mortgage payments to) AND REQUEST THE REINSTATEMENT QUOTE so you know the exact amount you have to submit to stop the foreclosure process with A LOSS MITIGATION option.

          The CFPB (Consumer Financial Protection Bureau) recently passed legislation prohibiting Servicers from beginning the foreclosure process for 120 after your loan is in Default. It is your responsibility to initiate action IN THE 120 DAY WINDOW to resolve your defaulted loan and depending on when you respond will determine how many OPTIONS you will have to stop a Foreclosure. Being in denial of your financial situation and taking no action is your worst option and will result in a foreclosure date assigned to sell your home at the Trustee Auction. 

          The SOONER you take action, the more time you have to negotiate your best option AND the more likely we can avoid a FORECLOSURE. Below are the three options that will negatively impact your FICO scores and financial future for 2 - 7 years (or more):

  • Deed-in-lieu:       Reported as a foreclosure with a ZERO balance. This option is only available up to the day you receive the certified letter "Notice of Default"
  • Short Sale:             Reported as a foreclosure with ONLY the loan debt. The loan debt is the unpaid principle balance, default amount & other fees MINUS the Short Sale proceeds.
  • Foreclosure:           Reported as a foreclosure with unpaid principle balance + default amount + cost of foreclosure/other fees


          Deed-in-lieu and Short Sales are your worst Loss Mitigation options BUT you only have a small window to exercise your better options – Loan Modification then Re-cast your Loan and then Deed-in-Lieu. Take action today. Call me for a private and confidential phone conversation - let's work together to keep your house,..your home! 254-444-8826 and my name is Billy Waddell